Rhode Island 2025 Regular Session

Rhode Island House Bill H6234 Compare Versions

Only one version of the bill is available at this time.

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5	5	2025 -- H 6234
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7	7	LC002726
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO ELECTIONS -- RHODE ISLAND CAMPAIGN CONTRIBUTIO NS AND
16	16	EXPENDITURES REPORTING
17	17	Introduced By: Representative Katherine S. Kazarian
18	18	Date Introduced: April 11, 2025
19	19	Referred To: House State Government & Elections
20	20
21	21
22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Sections 17-25-3, 17-25-7, 17-25-10, 17-25-11 and 17-25-12 of the General 1
24	24	Laws in Chapter 17-25 entitled "Rhode Island Campaign Contributions and Expenditures 2
25	25	Reporting" are hereby amended to read as follows: 3
26	26	17-25-3. Definitions. 4
27	27	As used in this chapter, unless a different meaning clearly appears from the context: 5
28	28	(1) “Accounts payable” means credit extended to a candidate or political, candidate 6
29	29	committee, political action committee or political party committee, for campaign expenditures; 7
30	30	provided that, the credit extended is in the ordinary course of the vendor’s business, and the terms 8
31	31	are substantially similar, in risk and amount, to extensions of credit to nonpolitical customers. 9
32	32	(2) “Business entity” means any corporation, whether for profit or not for profit, domestic 10
33	33	corporation or foreign corporation, as defined in § 7-1.2-106, financial institution, cooperative, 11
34	34	association, receivership, trust, holding company, firm, joint stock company, public utility, sole 12
35	35	proprietorship, partnership, limited partnership, or any other entity recognized by the laws of the 13
36	36	United States and/or the state of Rhode Island for the purpose of doing business. The term “business 14
37	37	entity” shall not include a political action committee organized pursuant to this chapter or a political 15
38	38	party committee or an authorized campaign committee of a candidate or office holder. The term 16
39	39	“business entity” shall not include any exempt nonprofit as defined herein or any organization 17
40	40	described in § 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding 18
41	41
42	42
43	43	LC002726 - Page 2 of 19
44	44	internal revenue code of the United States, as amended from time to time, for the purposes of 1
45	45	chapter 25.3 of this title. 2
46	46	(3) “Candidate” means any individual who undertakes any action, whether preliminary or 3
47	47	final, which is necessary under the law to qualify for nomination for election or election to public 4
48	48	office, and/or any individual who receives a contribution or makes an expenditure, or gives their 5
49	49	consent for any other person to receive a contribution or make an expenditure, with a view to 6
50	50	bringing about their nomination or election to any public office, whether or not the specific public 7
51	51	office for which they will seek nomination or election is known at the time the contribution is 8
52	52	received or the expenditure is made and whether or not they have announced their candidacy or 9
53	53	filed a declaration of candidacy at that time. 10
54	54	(4) “Conduit” or “intermediary” means any person who receives and forwards an 11
55	55	earmarked contribution to a candidate or a candidate’s authorized committee, except as otherwise 12
56	56	limited in this chapter. 13
57	57	(5) “Contributions” and “expenditures” include all transfers of money, credit or debit card 14
58	58	transactions, on-line or electronic payment systems such as “pay pal,” paid personal services, or 15
59	59	other thing of value to or by any candidate, committee of a political party, or political action 16
60	60	committee or ballot question advocate. A loan shall be considered a contribution of money until it 17
61	61	is repaid. 18
62	62	(6) “Covered transfer” means any transfer or payment of funds by any person, business 19
63	63	entity, or political action committee to another person, business entity, or political action committee 20
64	64	if the person, business entity, or political action committee making the transfer: (i) Designates, 21
65	65	requests, or suggests that the amounts be used for independent expenditures or electioneering 22
66	66	communications or making a transfer to another person for the purpose of making or paying for 23
67	67	such independent expenditures or electioneering communications; (ii) Made such transfer or 24
68	68	payment in response to a solicitation or other request for a transfer or payment for the making of 25
69	69	or paying for independent expenditures or electioneering communications or making a transfer to 26
70	70	another person for the purpose of making or paying for such independent expenditures or 27
71	71	electioneering communications; (iii) Engaged in discussions with the recipient of the transfer or 28
72	72	payment regarding independent expenditures or electioneering communications or making a 29
73	73	transfer to another person for the purpose of making or paying for such independent expenditures 30
74	74	or electioneering communications; or (iv) Made independent expenditures or electioneering 31
75	75	communications in an aggregate amount of five thousand dollars ($5,000) or more during the two-32
76	76	year (2) period ending on the date of the transfer or payment, or knew or had reason to know that 33
77	77	the person receiving the transfer or payment made such independent expenditures or electioneering 34
78	78
79	79
80	80	LC002726 - Page 3 of 19
81	81	communications in such an aggregate amount during that two-year (2) period. 1
82	82	(A) Exceptions: The term “covered transfer” does not include: 2
83	83	(I) A transfer or payment made by a person, business entity, or political action committee 3
84	84	in the ordinary course of any trade or business conducted by the person, business entity, or political 4
85	85	action committee or in the form of investments made by the person, business entity, or political 5
86	86	action committee; or 6
87	87	(II) A transfer or payment made by a person, business entity, or political action committee 7
88	88	if the person, business entity, or political action committee making the transfer prohibited, in 8
89	89	writing, the use of such transfer or payment for independent expenditures, electioneering 9
90	90	communications, or covered transfers and the recipient of the transfer or payment agreed to follow 10
91	91	the prohibition and deposited the transfer or payment in an account that is segregated from any 11
92	92	account used to make independent expenditures, electioneering communications, or covered 12
93	93	transfers. 13
94	94	(7) For the purposes of chapter 25.3 of this title, “donation” means all transfers of money, 14
95	95	credit or debit card transactions, on-line or electronic payment systems such as “pay pal,” paid 15
96	96	personal services, or other thing of value to or by any person, business entity, or political action 16
97	97	committee. A loan shall be considered a donation of money until it is repaid. 17
98	98	(8) For the purposes of chapter 25.3 of this title, “donor” means a person, business entity, 18
99	99	or political action committee that makes a donation. 19
100	100	(9) “Earmarked” means a designation, instruction, or encumbrance, whether direct or 20
101	101	indirect, express or implied, oral or written, that results in all or any part of a contribution or 21
102	102	expenditure being made to, or expended on behalf of, a clearly identified candidate or a candidate’s 22
103	103	authorized committee. 23
104	104	(10) “Election” means any primary, general, or special election or town meeting for any 24
105	105	public office of the state, municipality, or district, or for the determination of any question 25
106	106	submitted to the voters of the state, municipality, or district. 26
107	107	(11) “Election cycle” means the twenty-four month (24) period commencing on January 1 27
108	108	of odd number years and ending on December 31 of even number years; provided, with respect to 28
109	109	the public financing of election campaigns of general officers under §§ 17-25-19, 17-25-20, and 29
110	110	17-25-25, “election cycle” means the forty-eight month (48) period commencing on January 1 of 30
111	111	odd numbered years and ending December 31 of even numbered years. 31
112	112	(12) “Electioneering communication” means any print, broadcast, cable, satellite, or 32
113	113	electronic media communication not coordinated, as set forth in § 17-25-23, with any candidate, 33
114	114	authorized candidate campaign committee, or political party committee and that unambiguously 34
115	115
116	116
117	117	LC002726 - Page 4 of 19
118	118	identifies a candidate or referendum and is made either within sixty (60) days before a general or 1
119	119	special election or town meeting for the office sought by the candidate or referendum; or thirty (30) 2
120	120	days before a primary election, for the office sought by the candidate; and is targeted to the relevant 3
121	121	electorate. 4
122	122	(i) A communication that refers to a clearly identified candidate or referendum is “targeted 5
123	123	to the relevant electorate” if the communication can be received by two thousand (2,000) or more 6
124	124	persons in the district the candidate seeks to represent or the constituency voting on the referendum. 7
125	125	(ii) Exceptions: The term “electioneering communication” does not include: 8
126	126	(A) A communication appearing in a news story, commentary, or editorial distributed 9
127	127	through the facilities of any broadcasting station, unless such facilities are owned or controlled by 10
128	128	any political party, political committee, or candidate; 11
129	129	(B) A communication that constitutes a candidate debate or forum conducted pursuant to 12
130	130	regulations adopted by the board of elections or that solely promotes such a debate or forum and is 13
131	131	made by or on behalf of the person sponsoring the debate or forum; 14
132	132	(C) A communication made by any business entity to its members, owners, stockholders, 15
133	133	or employees; 16
134	134	(D) A communication over the internet, except for (I) Communications placed for a fee on 17
135	135	the website of another person, business entity, or political action committee; and (II) Websites 18
136	136	formed primarily for the purpose, or whose primary purpose is, to expressly advocate the election 19
137	137	or defeat of a clearly identified candidate or the passage or defeat of a referendum; or 20
138	138	(E) Any other communication exempted under such regulations as the board of elections 21
139	139	may promulgate (consistent with the requirements of this paragraph) to ensure the appropriate 22
140	140	implementation of this paragraph. 23
141	141	(13) “Exempt nonprofit” means any organization described in § 501(c)(4) of the Internal 24
142	142	Revenue Code that spends an aggregate annual amount of no more than ten percent (10%) of its 25
143	143	annual expenses or no more than fifteen thousand dollars ($15,000), whichever is less, on 26
144	144	independent expenditures, electioneering communications, and covered transfers as defined herein 27
145	145	and certifies the same to the board of elections seven (7) days before and after a primary election 28
146	146	and seven (7) days before and after a general or special election. 29
147	147	(14) “Fair market value” means the usual and normal charge for goods and services as 30
148	148	determined by the marketplace from which they ordinarily would have been purchased at a usual 31
149	149	and normal charge in an arms length transaction. 32
150	150	(i) For purposes of this subsection, “usual and normal charge for goods” means the price 33
151	151	of those goods in the market from which they ordinarily would have been purchased at the time of 34
152	152
153	153
154	154	LC002726 - Page 5 of 19
155	155	the contribution. “Usual and normal charge for services”, other than those provided by an unpaid 1
156	156	volunteer, means the hourly or piecework charge for the services at a commercially reasonable rate 2
157	157	prevailing at the time the services are rendered. 3
158	158	(15) “Independent expenditure” means an expenditure that, when taken as a whole, 4
159	159	expressly advocates the election or defeat of a clearly identified candidate, or the passage or defeat 5
160	160	of a referendum, or amounts to the functional equivalent of such express advocacy, and is in no 6
161	161	way coordinated, as set forth in § 17-25-23, with any candidate’s campaign, authorized candidate 7
162	162	committee, or political party committee. An expenditure amounts to the functional equivalent of 8
163	163	express advocacy if it can only be interpreted by a reasonable person as advocating the election, 9
164	164	passage, or defeat of a candidate or referendum, taking into account whether the communication 10
165	165	mentions a candidate or referendum and takes a position on a candidate’s character, qualifications, 11
166	166	or fitness for office. An independent expenditure is not a contribution to that candidate or 12
167	167	committee. 13
168	168	(i) Exceptions: The term “independent expenditure” does not include: 14
169	169	(A) A communication appearing in a news story, commentary, or editorial distributed 15
170	170	through the facilities of any broadcasting station, unless such facilities are owned or controlled by 16
171	171	any political party, political committee, or candidate; 17
172	172	(B) A communication that constitutes a candidate debate or forum conducted pursuant to 18
173	173	regulations adopted by the board of elections or that solely promotes such a debate or forum and is 19
174	174	made by or on behalf of the person sponsoring the debate or forum; 20
175	175	(C) A communication made by any business entity to its members, owners, stockholders, 21
176	176	or employees; 22
177	177	(D) A communication over the internet, except for (I) Communications placed for a fee on 23
178	178	the website of another person, business entity, or political action committee; and (II) Websites 24
179	179	formed primarily for the purpose, or whose primary purpose is, to expressly advocate the election 25
180	180	or defeat of a clearly identified candidate or the passage or defeat of a referendum; or 26
181	181	(E) Any other communication exempted under such regulations as the board of elections 27
182	182	may promulgate (consistent with the requirements of this paragraph) to ensure the appropriate 28
183	183	implementation of this paragraph. 29
184	184	(16) “In-kind contributions” means the monetary fair market value of other things of value 30
185	185	or paid personal services donated to, or benefiting, any person required to file reports with the board 31
186	186	of elections, including the difference between the amount paid by a reporting person and the fair 32
187	187	market value or a thing of value or personal service. 33
188	188	(17) “Other thing of value” means any item of tangible real or personal property of a fair-34
189	189
190	190
191	191	LC002726 - Page 6 of 19
192	192	market value in excess of one hundred dollars ($100). 1
193	193	(18) “Paid personal services” means personal services of every kind and nature, the cost or 2
194	194	consideration for which is paid or provided by someone other than the committee or candidate for 3
195	195	whom the services are rendered, but shall not include personal services provided without 4
196	196	compensation by persons individuals volunteering their time. 5
197	197	(19) “Person” means an individual, partnership, committee, association, corporation, 6
198	198	union, charity, and/or any other organization. The term “person” shall not include any exempt 7
199	199	nonprofit as defined herein or any organization described in § 501(c)(3) of the Internal Revenue 8
200	200	Code of 1986, or any subsequent corresponding internal revenue code of the United States, as 9
201	201	amended from time to time, for the purposes of chapter 25.3 of this title only. 10
202	202	(20) “Political action committee” means any group of two (2) or more persons that accepts 11
203	203	any contributions to be used for advocating the election or defeat of any candidate or candidates. 12
204	204	Only political action committees that have accepted contributions from fifteen (15) or more persons 13
205	205	in amounts of ten dollars ($10.00) or more within an election cycle shall be permitted to make 14
206	206	contributions, and those committees must make contributions to at least five (5) candidates for state 15
207	207	or local office within an election cycle. 16
208	208	(21) “Public office” means any state, municipal, school, or district office or other position 17
209	209	that is filled by popular election, except political party offices. “Political party offices” means any 18
210	210	state, city, town, ward, or representative or senatorial district committee office of a political party 19
211	211	or delegate to a political party convention, or any similar office. 20
212	212	(22) For purposes of chapter 25.3 of this title, “referendum” means the same as the 21
213	213	definition set forth in § 17-5-1. 22
214	214	(23) “State” means state of Rhode Island. 23
215	215	(24) “Testimonial affair” means an affair of any kind or nature including, but not limited 24
216	216	to, cocktail parties, breakfasts, luncheons, dinners, dances, picnics, or similar affairs expressly and 25
217	217	directly intended to raise campaign funds in behalf of a candidate to be used for nomination or 26
218	218	election to a public office in this state, or expressly and directly intended to raise funds in behalf of 27
219	219	any state or municipal committee of a political party, or expressly and directly intended to raise 28
220	220	funds in behalf of any political action committee. 29
221	221	17-25-7. Contents of reports to be filed by treasurers of candidates and committees. 30
222	222	(a) Each campaign treasurer of a candidate, each state and municipal committee of a 31
223	223	political party, and each political action committee shall keep accurate records and make a full 32
224	224	report, upon a form prescribed by the board of elections, of all contributions received, and 33
225	225	expenditures made, by it in excess of a total of two hundred dollars ($200), from any one source 34
226	226
227	227
228	228	LC002726 - Page 7 of 19
229	229	within a calendar year, in furtherance of the nomination, election, or defeat of any candidate or the 1
230	230	approval or rejection of any question submitted to the voters, or at any financial town meeting, 2
231	231	financial town referendum, or other election at which amendments to a city or town charter are 3
232	232	proposed, during the period from the date of the last report, or in the case of the initial report, 4
233	233	beginning on the date of the appointment of the campaign treasurer for state and municipal 5
234	234	committees and political action committees and on the date a person becomes a “candidate” as 6
235	235	defined in § 17-25-3 for individual candidates. The report shall contain the name, address, and 7
236	236	place of employment of each person or source from whom the contributions and expenditures in 8
237	237	excess of two hundred dollars ($200), were received or made and the amount contributed or 9
238	238	expended by each person or source. If such an expenditure constitutes a significant disbursement 10
239	239	to a controlling person within the meaning of § 17-25-7.7, the campaign treasurer shall submit a 11
240	240	separate notice of the significant disbursement to the state board of elections on a form prescribed 12
241	241	by the board affirmatively demonstrating that the requirements of § 17-25-7.7(c) were satisfied. 13
242	242	The report shall be filed with the board of elections on the dates designated in § 17-25-11. The 14
243	243	campaign treasurer of the candidate or committee reporting shall certify to the correctness of each 15
244	244	report. Notwithstanding any other provisions contained in this title, this subsection shall apply to 16
245	245	any person or entity advocating the approval or rejection of any question presented to voters at any 17
246	246	financial town meeting, financial town referendum, or other election at which amendments to a city 18
247	247	or town charter are proposed, which shall file reports of contributions or expenditures in accordance 19
248	248	with the filing schedule established by § 17-25-11 if the total of the money so expended exceeds 20
249	249	two hundred dollars ($200), in a calendar year. As used in this subsection, the word “entity” means 21
250	250	any political action committee, political party committee, authorized campaign committee of a 22
251	251	candidate or officer holder, corporation, whether for profit, not-for-profit, or exempt nonprofit 23
252	252	pursuant to 26 U.S.C. § 501(c)(3) of the Internal Revenue Code, domestic corporation or foreign 24
253	253	corporation, as defined in § 7-1.2-106, financial institution, cooperative, association, receivership, 25
254	254	partnership, committee, union, charity, trust, holding company, firm, joint stock company, public 26
255	255	utility, sole proprietorship, limited partnership, or any other entity recognized by the laws of the 27
256	256	United States and/or the state of Rhode Island. 28
257	257	(b) Each state and municipal committee of a political party shall also file with the board of 29
258	258	elections, not later than March 1 of each year, an annual report setting forth in the aggregate all 30
259	259	contributions received and all expenditures made during the previous calendar year, whether or not 31
260	260	these expenditures were made, incurred, or authorized in furtherance of the election or defeat of 32
261	261	any candidate. The treasurer of the committee or organization reporting shall certify to the 33
262	262	correctness of each report. 34
263	263
264	264
265	265	LC002726 - Page 8 of 19
266	266	(c)(1) Any report filed pursuant to the provisions of this section shall include expenditures 1
267	267	or disbursements paid on behalf of or for the benefit of the reporting person by an agent or 2
268	268	independent contractor, including a vendor. 3
269	269	(2) An agent or contractor, including a vendor, who makes an expenditure or disbursement 4
270	270	on behalf of or for the benefit of a committee or person that is required to be reported under this 5
271	271	section shall promptly make known to the reporting committee or person all the information 6
272	272	required for reporting the expenditure or disbursement. 7
273	273	(3) If the electronic campaign finance reporting system is technologically capable of 8
274	274	displaying or otherwise providing information required by subsection (c) of this section to the 9
275	275	public, the state board of elections shall provide online public access to such information through 10
276	276	the system. If the electronic campaign finance reporting system is not technologically capable of 11
277	277	providing such information to the public, the board shall create an interim procedure for the public 12
278	278	to obtain the information reported under subsection (c) of this section. 13
279	279	(c)(d) Any report filed pursuant to the provisions of this section shall include contributions 14
280	280	received from any “testimonial affair,” as defined in § 17-25-3, held since the date of the most 15
281	281	recent report filed. 16
282	282	17-25-10. Lawful methods of contributing to support of candidates — Reporting — 17
283	283	Disposition of anonymous contributions. 18
284	284	(a) No contribution shall be made or received, and no expenditures shall be directly made 19
285	285	or incurred, to support or defeat a candidate except through: 20
286	286	(1) The candidate or duly appointed campaign treasurer or deputy campaign treasurer of 21
287	287	the candidate; 22
288	288	(2) The duly appointed campaign treasurer or deputy campaign treasurer of a political party 23
289	289	committee; 24
290	290	(3) The duly appointed campaign treasurer or deputy campaign treasurer of a political 25
291	291	action committee. 26
292	292	(b) Any settlement of accounts payable between a creditor and a candidate, candidate 27
293	293	committee, political action committee, or political party committee for less than the full amount 28
294	294	owed shall comply with the applicable contribution limitations under this chapter. The state board 29
295	295	of elections may determine that a settlement of accounts payable for less than the full amount owed 30
296	296	falls within the creditor's normal business practices and therefore, does not constitute a contribution 31
297	297	subject to the applicable contribution limitations under this chapter. 32
298	298	(1) Any accounts payable by a candidate, candidate committee, political action committee 33
299	299	or political party committee shall be considered a contribution received in-kind if the accounts 34
300	300
301	301
302	302	LC002726 - Page 9 of 19
303	303	payable remains outstanding, in full or in part, for a period of time that exceeds that which the 1
304	304	entity to whom payment is owed permits for persons that are not candidates, political action 2
305	305	committees or political party committees. 3
306	306	(2) Notwithstanding subsection (b)(1) of this section, if any accounts payable by a 4
307	307	candidate, candidate committee, political action committee or political party committee remains 5
308	308	outstanding for one hundred twenty (120) days, the candidate, political action committee, or 6
309	309	political party shall submit a notice to the state board of elections within seventy-two (72) hours on 7
310	310	a form prescribed by the board detailing the amount and purpose of such accounts payable and the 8
311	311	arrangements made for discharge of the unpaid amount. Any accounts payable by a candidate 9
312	312	political action committee or political party committee shall be considered a contribution received 10
313	313	in-kind if the account remains unpaid, in full or in part, for more than one hundred eighty (180) 11
314	314	days. 12
315	315	(3) Any accounts payable by a candidate, candidate committee, political action committee 13
316	316	or political party committee that is considered a contribution received in-kind pursuant to 14
317	317	subsections (b)(1) and (b)(2) of this section is subject to contribution limitations under § 17-25-15
318	318	10.1 and the penalties provided in § 17-25-13 for any resulting violation of that provision. 16
319	319	(b)(c) It shall be lawful for any person, not otherwise prohibited by law and not acting in 17
320	320	concert with any other person or group, to expend personally from that person’s own funds a sum 18
321	321	that is not to be repaid to him or her for any purpose not prohibited by law to support or defeat a 19
322	322	candidate; provided, that any person making the expenditure shall be required to report all of his or 20
323	323	her expenditures and expenses, if the total of the money so expended exceeds one hundred dollars 21
324	324	($100) within a calendar year, to the board of elections within seven (7) days of making the 22
325	325	expenditure and to the campaign treasurer of the candidate or political party committee on whose 23
326	326	behalf the expenditure or contribution was made, or to his or her deputy, within seven (7) days of 24
327	327	making the expenditure. The treasurer or his or her deputy shall cause the expenditures and 25
328	328	expenses to be included in his or her reports to the board of elections. Whether a person is “acting 26
329	329	in concert with any other person or group” for the purposes of this subsection shall be determined 27
330	330	by application of the standards set forth in § 17-25-23. 28
331	331	(c)(d) Any anonymous contribution received by a candidate, campaign treasurer, or deputy 29
332	332	campaign treasurer shall not be used or expended, but shall be returned to the donor, if the donor’s 30
333	333	identity can be ascertained; if not, the contribution shall escheat to the state. 31
334	334	17-25-11. Dates for filing of reports by treasurers of candidates or of committees. 32
335	335	(a) During the period between the appointment of the campaign treasurer for state and 33
336	336	municipal committees and political action committees, or in the case of an individual the date on 34
337	337
338	338
339	339	LC002726 - Page 10 of 19
340	340	which the individual becomes a “declared or undeclared candidate” as defined in § 17-25-3(3), 1
341	341	except when the ninety-day (90) reporting period ends less than forty (40) days prior to an election 2
342	342	in which case the ninety-day (90) report shall be included as part of the report required to be filed 3
343	343	on the twenty-eighth (28th) day next preceding the day of the primary, general, or special election 4
344	344	pursuant to subsection (a)(2) of this section, and the election, with respect to which contributions 5
345	345	are received, accounts payable, or expenditures made by him or her in behalf of, or in opposition 6
346	346	to, a candidate, the campaign treasurer of a candidate, a political party committee, or a political 7
347	347	action committee shall file a report containing an account of contributions received, and 8
348	348	expenditures made, on behalf of, or in opposition to, a candidate: 9
349	349	(1) At ninety-day (90) intervals commencing on the date on which the individual first 10
350	350	becomes a candidate, as defined in § 17-25-3(3); 11
351	351	(2) In a contested election, on the twenty-eighth (28th) and seventh (7th) days next 12
352	352	preceding the day of the primary, general, or special election; provided, that in the case of a primary 13
353	353	election for a special election where the twenty-eighth (28th) day next preceding the day of the 14
354	354	primary election occurs prior to the first day for filing declarations of candidacy pursuant to § 17-15
355	355	14-1, the reports shall be due on the fourteenth (14th) and seventh (7th) days next preceding the 16
356	356	day of the primary election for the special election; and 17
357	357	(3) A final report on the twenty-eighth (28th) day following the election. The report shall 18
358	358	contain: 19
359	359	(i) The name and address and place of employment of each person from whom 20
360	360	contributions in excess of a total of two hundred dollars ($200), within a calendar year were 21
361	361	received; 22
362	362	(ii) The amount contributed by each person; 23
363	363	(iii) The name and address of each person to whom expenditures in excess of two hundred 24
364	364	dollars ($200), were made; and 25
365	365	(iv) The amount and purpose of each expenditure; and 26
366	366	(v) For any accounts payable outstanding at the time of the final report, the amount and 27
367	367	purpose of such accounts payable. 28
368	368	(b) Concurrent with the report filed on the twenty-eighth (28th) day following an election, 29
369	369	or at any time thereafter, the campaign treasurer of a candidate, or political party committee, or 30
370	370	political action committee, may certify to the board of elections that the campaign fund of the 31
371	371	candidate, political party committee, or political action committee having been instituted for the 32
372	372	purposes of the past election, has completed its business and been dissolved or, in the event that 33
373	373	the committee will continue its activities beyond the election, that its business regarding the past 34
374	374
375	375
376	376	LC002726 - Page 11 of 19
377	377	election has been completed. The certification shall be accompanied by a final accounting of the 1
378	378	campaign fund, or of the transactions relating to the election, including the final disposition of any 2
379	379	balance remaining in the fund at the time of dissolution or the arrangements that have been made 3
380	380	for the discharge of any obligations remaining unpaid at the time of dissolution. Any committee 4
381	381	that reports accounts payable cannot be dissolved until such accounts are fully paid. 5
382	382	(c)(1) Once the campaign treasurer certifies that the campaign fund has completed its 6
383	383	business and been dissolved, no contribution that is intended to defray expenditures incurred on 7
384	384	behalf of, or in opposition to, a candidate during the campaign can be accepted. Until the time that 8
385	385	the campaign treasurer certifies that the campaign fund has completed its business and been 9
386	386	dissolved, the treasurer shall file reports containing an account of contributions received and 10
387	387	expenditures made at ninety-day (90) intervals commencing with the next quarterly report 11
388	388	following the election; however, the time to file under this subsection shall be no later than the last 12
389	389	day of the month following the ninety-day (90) period, except when the last day of the month filing 13
390	390	deadline following the ninety-day (90) reporting period occurs less than twenty-eight (28) days 14
391	391	before an election, in which case the report shall be filed pursuant to the provisions of subsections 15
392	392	(a)(1) and (a)(2) of this section. Provided, however, if the last day of the month falls on a weekend 16
393	393	or a holiday, the report shall be due on the following business day. 17
394	394	(2) In addition to the reports required pursuant to this section, a candidate or office holder 18
395	395	shall also file with the board of elections a paper copy of the account statement from the office 19
396	396	holder’s campaign account, which account statement shall be the next account statement issued by 20
397	397	their financial institution after the filing of the fourth quarterly campaign expense report. The 21
398	398	account statement shall be submitted to the board within thirty (30) days of its receipt by the 22
399	399	candidate, officeholder, treasurer, or deputy treasurer. The account statement shall not be deemed 23
400	400	a public record pursuant to the provisions of chapter 2 of title 38. The board of elections, its agents, 24
401	401	and employees shall not publish, deliver, copy, or disclose, to any person or entity any account 25
402	402	statement or information contained therein for any candidate, former candidate, officeholder, party, 26
403	403	or political action committee. Provided, as to state and municipal political parties, the requirements 27
404	404	of this subsection (c)(2) shall apply to the annual report required pursuant to § 17-25-7. 28
405	405	(d)(1) There shall be no obligation to file the reports of expenditures required by this 29
406	406	section on behalf of, or in opposition to, a candidate if the total amount to be expended in behalf of 30
407	407	the candidacy by the candidate, by any political party committee, by any political action committee, 31
408	408	or by any person shall not in the aggregate exceed two thousand dollars ($2,000). 32
409	409	(2) However, even though the aggregate amount expended on behalf of the candidacy does 33
410	410	not exceed two thousand dollars ($2,000), reports must be made listing the source and amounts of 34
411	411
412	412
413	413	LC002726 - Page 12 of 19
414	414	all contributions in excess of a total of two hundred dollars ($200) from any one source, within a 1
415	415	calendar year. Even though the aggregate amount expended on behalf of the candidacy does not 2
416	416	exceed two thousand dollars ($2,000) and no contribution from any one source, within a calendar 3
417	417	year two hundred dollars ($200), the report shall state the aggregate amount of all contributions 4
418	418	received. In addition, the report shall state the amount of aggregate contributions that were from 5
419	419	individuals, the amount from political action committees, and the amount from political party 6
420	420	committees. 7
421	421	(e) On or before the first date for filing contribution and expenditure reports, the campaign 8
422	422	treasurer may file a sworn statement that the treasurer will accept no contributions nor make 9
423	423	aggregate expenditures in excess of the minimum amounts for which a report is required by this 10
424	424	chapter. Thereafter, the campaign treasurer shall be excused from filing all the reports for that 11
425	425	campaign, other than the final report due on the twenty-eighth (28th) day following the election. 12
426	426	(f) A campaign treasurer must file a report containing an account of contributions received 13
427	427	and expenditures made at the ninety-day (90) intervals provided for in subsection (c) of this section 14
428	428	for any ninety-day (90) period in which the campaign received contributions in excess of a total of 15
429	429	two hundred dollars ($200), within a calendar year from any one source and/or made expenditures 16
430	430	in excess of two thousand dollars ($2,000) within a calendar year; however, the time to file under 17
431	431	this subsection shall be no later than the last day of the month following the ninety-day (90) period, 18
432	432	except when the last day of the month filing deadline following the ninety-day (90) reporting period 19
433	433	occurs less than twenty-eight (28) days before an election, in which case the report shall be filed 20
434	434	pursuant to the provisions of subsections (a)(1) and (a)(2) of this section. Provided, however, if the 21
435	435	last day of the month falls on a weekend or a holiday, the report shall be due on the following 22
436	436	business day. 23
437	437	(g)(1) The board of elections may, for good cause shown and upon the receipt of a written 24
438	438	or electronic request, grant a seven-day (7) extension for filing a report; provided, that the request 25
439	439	must be received no later than the date upon which the report is due to be filed. 26
440	440	(2) Any person or entity required to file reports with the board of elections pursuant to this 27
441	441	section and who or that has not filed the report by the required date, unless granted an extension 28
442	442	pursuant to subsection (g)(1) of this section, shall be fined twenty-five dollars ($25.00). 29
443	443	Notwithstanding any of the provisions of this section, the board of elections shall have the authority 30
444	444	to waive late filing fees for good cause shown. 31
445	445	(3) The board of elections shall send a notice of non-compliance, by certified mail, to any 32
446	446	person or entity who or that fails to file the reports required by this section. A person or entity who 33
447	447	or that is sent a notice of non-compliance and fails to file the required report within seven (7) days 34
448	448
449	449
450	450	LC002726 - Page 13 of 19
451	451	of the receipt of the notice, shall be fined two dollars ($2.00) per day from the day of receipt of the 1
452	452	notice of non-compliance until the day the report has been received by the state board. 2
453	453	Notwithstanding any of the provisions of this section, the board of elections shall have the authority 3
454	454	to waive late filing fees for good cause shown. 4
455	455	17-25-12. Prohibited contributions. 5
456	456	(a) No contributions shall be made, and no expenditure shall be made or incurred, whether 6
457	457	anonymously, in a fictitious name, or by one person or group in the name of another, to support or 7
458	458	defeat a candidate in a primary, general, or special election. No person or group shall knowingly 8
459	459	help or assist any other person or group in making a contribution or expenditure contrary to the 9
460	460	provisions of this section. No treasurer or candidate shall solicit or knowingly accept any 10
461	461	contribution contrary to the provisions of this section. 11
462	462	(b) Notwithstanding the provisions of § 17-25-13: 12
463	463	(1) Any person or group who violates the provisions of this section shall be fined not less 13
464	464	than the amount contributed, and not more than two thousand dollars ($2,000) or double the amount 14
465	465	contributed, whichever is greater. 15
466	466	(2) Any person or group who willfully and knowingly violates the provisions of this section 16
467	467	shall upon conviction be guilty of a misdemeanor and shall be fined not less than double the amount 17
468	468	contributed and not more than ten thousand dollars ($10,000) or triple the amount contributed, 18
469	469	whichever is greater. 19
470	470	(3) The state board of elections may impose civil fines as described in subsection (b)(1) of 20
471	471	this section and order disgorgement of contributions to the general fund. 21
472	472	SECTION 2. Section 17-25.3-1 of the General Laws in Chapter 17-25.3 entitled 22
473	473	"Independent Expenditures and Electioneering Communications" is hereby amended to read as 23
474	474	follows: 24
475	475	17-25.3-1. Independent expenditures and electioneering communications for 25
476	476	elections. 26
477	477	(a) It shall be lawful for any person, business entity or political action committee, not 27
478	478	otherwise prohibited by law and not acting in coordination with a candidate, authorized candidate 28
479	479	campaign committee, political action committee, or political party committee, to expend personally 29
480	480	from that person’s own funds a sum which is not to be repaid to him or her for any purpose not 30
481	481	prohibited by law to support or defeat a candidate or referendum. Whether a person, business entity 31
482	482	or political action committee is “acting in coordination with a candidate, authorized candidate 32
483	483	campaign committee, political action committee or political party committee” for the purposes of 33
484	484	this subsection shall be determined by application of the standards set forth in § 17-25-23. All terms 34
485	485
486	486
487	487	LC002726 - Page 14 of 19
488	488	used in this chapter shall have the same meaning as defined in § 17-25-3. 1
489	489	(b) Any person, business entity or political action committee making independent 2
490	490	expenditures, electioneering communications, or covered transfers shall report all such campaign 3
491	491	finance expenditures and expenses to the board of elections, provided the total of the money so 4
492	492	expended exceeds one thousand dollars ($1,000) within a calendar year, to the board of elections 5
493	493	within seven (7) days of making the expenditure. 6
494	494	(c) A person, business entity or political action committee who makes or contracts to make 7
495	495	independent expenditures, electioneering communications, or covered transfers with an aggregate 8
496	496	value of one thousand dollars ($1,000) or more shall electronically file a campaign finance report 9
497	497	to the board of elections describing the expenditures. 10
498	498	(d) After a person, business entity or political action committee files a report under 11
499	499	subsection (b), the person, business entity or political action committee shall file an additional 12
500	500	report after each time the person, business entity or political action committee makes or contracts 13
501	501	to make independent expenditures, electioneering communications, or covered transfers 14
502	502	aggregating an additional one thousand dollars ($1,000) with respect to the same election as that to 15
503	503	which the initial report relates. 16
504	504	(e) When a report is required by subsection (c) or (d) of this section within thirty (30) days 17
505	505	prior to the election to which the expenditure was directed, it shall be filed within twenty-four (24) 18
506	506	hours of the expenditure. When such a report is required at any other time, it shall be filed within 19
507	507	seven (7) days after the expenditure. 20
508	508	(f) Reports of independent expenditures, electioneering communications, or covered 21
509	509	transfers by a person shall contain the name, street address, city, state, zip code, occupation, 22
510	510	employer (if self-employed, the name and place of business), of the person responsible for the 23
511	511	expenditure, the name, street address, city, state, and zip code of the person receiving the 24
512	512	expenditure the date and amount of each expenditure, and the year to date total. 25
513	513	(1) Any report filed pursuant to the provisions of this section shall include expenditures or 26
514	514	disbursements paid on behalf of or for the benefit of the reporting person by an agent or independent 27
515	515	contractor including a vendor. 28
516	516	(2) An agent or contractor including a vendor, who makes an expenditure or disbursement 29
517	517	on behalf of or for the benefit of a committee or person that is required to be reported under this 30
518	518	section shall promptly make known to the reporting committee or person all the information 31
519	519	required for reporting the expenditure or disbursement. 32
520	520	(3) If the electronic campaign finance reporting system is technologically capable of 33
521	521	displaying or otherwise providing the information required by this subsection to the public, the 34
522	522
523	523
524	524	LC002726 - Page 15 of 19
525	525	state board of elections shall provide online public access to such information through the system. 1
526	526	If the electronic campaign finance reporting system is not technologically capable of providing 2
527	527	such information to the public, the board shall create an interim procedure for the public to obtain 3
528	528	the information reported under this subsection. 4
529	529	(g) The report shall also include a statement identifying the candidate or referendum that 5
530	530	the independent expenditure or electioneering communication is intended to promote the success 6
531	531	or defeat, and affirm under penalty of false statement that the expenditure is not coordinated with 7
532	532	the campaign in question, and provide any information that the board of elections requires to 8
533	533	facilitate compliance with the provisions of this chapter. 9
534	534	(h) Reports of independent expenditures, electioneering communications, or covered 10
535	535	transfers by a person, business entity or political action committee shall also disclose the identity 11
536	536	of all donors of an aggregate of one thousand dollars ($1,000) or more to such person, business 12
537	537	entity or committee within the current election cycle, if applicable, unless the person, business 13
538	538	entity or political action committee has established a separate campaign-related account for 14
539	539	independent expenditures, electioneering communications, and covered transfers as detailed in § 15
540	540	17-25.3-2 in which case this paragraph applies only to donors to the person’s, business entity’s or 16
541	541	political action committee’s separate campaign-related account; provided that no person, business 17
542	542	entity, or political action committee shall be required to disclose in a report to the board of elections 18
543	543	the identity, which includes name, address, place of employment, and donation amount, of any 19
544	544	donor who makes no donation to such person, business entity, or political action committee after 20
545	545	the date of enactment of this section. 21
546	546	(i) If a person, business entity or political action committee and a donor mutually agree, at 22
547	547	the time a donation, payment, or transfer to the person, business entity or political action committee 23
548	548	which is required to disclose the identification under subsection (f) that the person, business entity 24
549	549	or political action committee will not use the donation, payment, or transfer for independent 25
550	550	expenditures, electioneering communications, or covered transfers, then not later than thirty (30) 26
551	551	days after the person, business entity or political action committee receives the donation, payment, 27
552	552	or transfer the person, business entity or political action committee shall transmit to the donor a 28
553	553	written certification by the chief financial officer of the person, business entity or political action 29
554	554	committee (or, if the organization does not have a chief financial officer, the highest ranking 30
555	555	financial official of the organization) that: 31
556	556	(1) The person, business entity or political action committee will not use the donation, 32
557	557	payment, or transfer for independent expenditures, electioneering communications, or covered 33
558	558	transfers; and 34
559	559
560	560
561	561	LC002726 - Page 16 of 19
562	562	(2) The person, business entity or political action committee will not include any 1
563	563	information on the donor in any report filed by the person, business entity or political action 2
564	564	committee under this section with respect to independent expenditures, electioneering 3
565	565	communications, or covered transfers, so that the donor will not be required to appear in the list of 4
566	566	donors. 5
567	567	(3) Exception for payments made pursuant to commercial activities. Subsections (e) and 6
568	568	(f) do not apply with respect to any payment or transfer made pursuant to commercial activities in 7
569	569	the regular course of a person’s, business entity’s or political action committee’s business. 8
570	570	(j) For the purposes of this chapter, two (2) or more entities (other than an exempt nonprofit 9
571	571	as defined in § 17-25-3 or an organization described in § 501(c)(3) of the Internal Revenue Code 10
572	572	of 1986, or any subsequent corresponding internal revenue code of the United States, as amended 11
573	573	from time to time) are treated as a single entity if the entities: 12
574	574	(1) Share the majority of members on their boards of directors; 13
575	575	(2) Share two (2) or more officers; 14
576	576	(3) A candidate committee and a political committee other than a candidate committee are 15
577	577	for the purposes of this section treated as a single committee if the committees both have the 16
578	578	candidate or a member of the candidate’s immediate family as an officer; 17
579	579	(4) Are owned or controlled by the same majority shareholder or shareholders or persons; 18
580	580	(5) Are in a parent-subsidiary relationship; or 19
581	581	(6) Have bylaws so stating. 20
582	582	(k) No donation, payments, or transfers shall be made, and no expenditure shall be made 21
583	583	or incurred, anonymously, in a fictitious name, or by one person or group in the name of another, 22
584	584	for the making of an independent expenditure or electioneering communication under this section. 23
585	585	No person or group shall knowingly permit the use of the person's or group's name to effect any 24
586	586	donation, payment, transfer, or expenditure contrary to the provisions of this section. No person or 25
587	587	group shall knowingly help or assist any other person or group in making any donation, payment, 26
588	588	transfer, or expenditure contrary to the provisions of this section. No person, business entity, or 27
589	589	political action committee shall solicit or knowingly accept any donation, payment, or transfer 28
590	590	contrary to the provisions of this section. 29
591	591	(l) Notwithstanding § 17-25.3-4: 30
592	592	(1) Any person, business entity, or political action committee who violates the provisions 31
593	593	of subsection (k) of this section shall be fined not less than the amount contributed, and not more 32
594	594	than two thousand ($2,000) or double the amount contributed, whichever is greater. 33
595	595	(2) Any person, business entity, or political action committee who willfully and knowingly 34
596	596
597	597
598	598	LC002726 - Page 17 of 19
599	599	violates the provisions of subsection (k) of this section shall upon conviction be guilty of a 1
600	600	misdemeanor and fined not less than double the amount contributed and not more than ten thousand 2
601	601	dollars ($10,000) or triple the amount contributed, whichever is greater. 3
602	602	(3) The state board of elections may impose civil fines as described in subsection (l)(1) of 4
603	603	this section and order disgorgement of donations, payments, or transfers in violation of this section 5
604	604	to the general fund. 6
605	605	SECTION 3. Chapter 17-25 of the General Laws entitled "Rhode Island Campaign 7
606	606	Contributions and Expenditures Reporting" is hereby amended by adding thereto the following 8
607	607	section: 9
608	608	17-25-7.7. Self-dealing with committee funds prohibited. 10
609	609	(a) A contribution or donation received by a committee may be used for any purpose that 11
610	610	would otherwise be lawful under this chapter, unless prohibited by subsections (b) or (d) of this 12
611	611	section. 13
612	612	(b) Self-dealing by any controlling person of contributions or donations received by a 14
613	613	committee is prohibited. For the purposes of this section, the use of a contribution or donation shall 15
614	614	be presumed to be self-dealing if the contribution or donation is used to make a significant 16
615	615	disbursement to a controlling person. 17
616	616	(c) The presumption in subsection (b) of this section may be rebutted upon a showing that: 18
617	617	(1) The significant disbursement to the controlling person is a bona fide payment for goods 19
618	618	or services at no greater than fair market value; 20
619	619	(2) The significant disbursement was negotiated at arms' length by and approved by an 21
620	620	agent of the committee who was neither the controlling person nor in an employment relationship 22
621	621	directly or indirectly subject to the direction or control of the controlling person; 23
622	622	(3) The agent who negotiated and approved the significant disbursement obtained and 24
623	623	relied upon appropriate data as to fair market value prior to approving the disbursement; 25
624	624	(4) The agent documented the basis for the approval determination concurrently with 26
625	625	making that determination; and 27
626	626	(5) At the time the significant disbursement was made, the aggregate total of itemized 28
627	627	contributions to the committee during the election cycle exceeded the aggregate total of 29
628	628	disbursements to controlling persons by the committee during the election cycle. 30
629	629	(d) In addition to the presumption in subsection (b) of this section, the use of contributions 31
630	630	or donations for the following purposes to benefit a controlling person shall be considered self-32
631	631	dealing and is specifically prohibited. 33
632	632	(1) Any residential or household items, supplies, or expenditures, including mortgage, rent, 34
633	633
634	634
635	635	LC002726 - Page 18 of 19
636	636	or utility payments for any part of any personal residence; 1
637	637	(2) Mortgage, rent, or utility payments for any part of any nonresidential property that is 2
638	638	owned by a controlling person and used for campaign purposes, to the extent the payments exceed 3
639	639	the fair-market value of the property usage; 4
640	640	(3) Funeral, cremation, or burial expenses, including any expenses related to deaths within 5
641	641	a controlling person's family; 6
642	642	(4) Clothing, other than items of de minimis value that are used in the campaign; 7
643	643	(5) Tuition payments; 8
644	644	(6) Dues, fees, or gratuities at a country club, health club, recreational facility or other 9
645	645	nonpolitical organization, unless they are part of a specific fundraising event that takes place on the 10
646	646	organization's premises; 11
647	647	(7) Admission to a sporting event, concert, theater, or other form of entertainment unless 12
648	648	part of a specific campaign or officeholder activity; and 13
649	649	(8) Payment of any fines, fees, or penalties assessed pursuant to this chapter. 14
650	650	(e) For purposes of this section: 15
651	651	(1) "Agent" means any person with actual authority, whether express or implied, to engage 16
652	652	in activities on behalf of another person. 17
653	653	(2) "Committee" means an authorized campaign committee of a candidate or officeholder, 18
654	654	a political action committee, or a political party committee. 19
655	655	(3) "Controlling person" means any person who has authority or ability to direct or control 20
656	656	the committee's disbursements, any family member or business partner of such person, and any 21
657	657	business entity or other entity owned or controlled, in whole or in part, by such person, family 22
658	658	member, or business partner. 23
659	659	(4) "Significant disbursement" means a disbursement that exceeds one thousand dollars 24
660	660	($1,000) or, when aggregated with all other disbursements by the committee to the recipient within 25
661	661	the calendar year, exceeds five thousand dollars ($5,000). 26
662	662	(f) Nothing in this section shall be construed to permit otherwise prohibited personal uses 27
663	663	of campaign funds under § 17-25-7.2. 28
664	664	SECTION 4. This act shall take effect upon passage. 29
665	665	========
666	666	LC002726
667	667	========
668	668
669	669
670	670	LC002726 - Page 19 of 19
671	671	EXPLANATION
672	672	BY THE LEGISLATIVE COUNCIL
673	673	OF
674	674	A N A C T
675	675	RELATING TO ELECTIONS -- RHODE ISLAND CAMPAIGN CONTRIBUTIONS AND
676	676	EXPENDITURES REPORTING
677	677	***
678	678	This act would amend various sections of law relating to campaign contributions and 1
679	679	expenditures including prohibitions on self-dealing with committee funds and would prohibit 2
680	680	donations made in fictitious names. 3
681	681	This act would take effect upon passage. 4
682	682	========
683	683	LC002726
684	684	========